Personal savings allowance

Over62

My OH is a 40% taxpayer and has interest, including Halifax rewards, of £513 for 2016/17. The Halifax rewards total £50.50. I'm sure I read somewhere that the Halifax rewards don't count towards the PSA and if this is so, he will be under the £500 limit. Can anyone confirm this?

notbritishgas

Over62 wrote: »

My OH is a 40% taxpayer and has interest, including Halifax rewards, of £513 for 2016/17. The Halifax rewards total £50.50. I'm sure I read somewhere that the Halifax rewards don't count towards the PSA and if this is so, he will be under the £500 limit. Can anyone confirm this?

The rewards do not count as they are rewards not interest.

But they are taxed at source so OH may have to pay more as he/she is a 40 percent taxpayer.

soulsaver

Halifax Rewards are paid net of tax (paid by Halifax); none of it counts towards his PSA.

alanq

MSE Article

http://www.moneysavingexpert.com/news/banking/2016/07/halifax-barclays-or-co-op-bank-customer-you-may-need-to-pay-tax-on-your-rewards

isasmurf

IanManc wrote: »

The Halifax Reward isn't interest, so doesn't count towards the PSA.

The reward is paid after deduction of income tax at 20%. Since your OH is a 40% taxpayer he is liable to another 20% tax on the Reward, and so the Reward should be declared in the "other income" section of his tax return.

That's if he completes a tax return, otherwise it is just a case of phoning HMRC, sending them a letter with the details, or, if registered for the Personal Tax Account, declaring it online (though you can't seem to declare income for last year online)

Over62

Thanks everyone.